Due to statistics published there is a rising trend of out of pocket expenses for patients due to the growing high deductible health plans for consumers. In a recent research study by InstaMed in 2013, the annual number of patient payments to providers rose 72 percent between 2011 and 2013, and the average payment of $110.86 in 2011 increased 20 percent to $133.15 in 2013.
America’s Health Insurance Plans, a payer trade association, expects out-of-pocket expenses for insured patients to rise from $250 billion in 2009 to $420 billion by 2015.
Due to the increased out of pocket expenses of patients, providers increasingly are offering payment plans; InstaMed’s data shows that the number of annual transactions for payment plans increased by 284% (percent) from 2011 to 2013. Additionally, more providers are accepting credit card-based electronic payments online and more patients are willing to pay this way. In 2013, credit card payments represented 42 percent of the gross dollar volume of back office payments which is an 8% percent increase from two years ago.
An InstaMed survey of providers that complements the data analysis shows 67 percent of patients saw an increase in their payment responsibility in 2013.
Forty-two percent of providers did not know what the patient was responsibile for paying during the visit. Seventy six percent (76%) said it takes more than a month to collect from a patient and 56 percent pegged collections as the top revenue cycle concern.
Another survey found of more than 200 consumers found that 72 percent of respondents were unaware of their payment responsibility during a visit. Only 2 percent received healthcare bills via email in 2013. When a patient was given the option of how to pay a healthcare bill most indicated they would pay online via a provider, payer or bank Web portal. The vendor reminds providers that mobile devices also can be used to collect payments at the point of service.
An area believed to help lower the amount of time to be paid by a patient would be for the practice to use a price transparency software. This would allow the patient to know exactly what they will owe for the service they are receiving. Then, the patient has the option of paying the bill at te day of service or know what to budget for when they leave the office. Therefore, once they receive the bill at home they may have already set the funds aside to pay for this bill. Either way price transparency software is very simple to use in a medical office/ clinic and can decrease the days of your A/R (accounts receivable).
If you are interested in seeing how Price Transparency software can help you with increasing your collections in a shorter time interval please contact us at EHR & Practice Management Consultants, Inc (800) 376-0212, 847-322-0139 and email@example.com. We can show you a demonstration on how price transparency software would work in your practice and see if it would be a good fit for you.